5 Stocks Rising on Unusual Volume - views

DELAFIELD, Wis. (Stockpickr) -- Professional traders running mutual funds and hedge funds don't just look at a stock's price moves; they also track big changes in volume activity. Often when above-average volume moves into an equity, it precedes a large spike in volatility.

Major moves in volume can signal unusual activity, such as insider buying or selling -- or buying or selling by "superinvestors."

Unusual volume can also be a major signal that hedge funds and momentum traders are piling into a stock ahead of a catalyst. These types of traders like to get in well before a large spike, so it's always a smart move to monitor unusual volume. That said, remember to combine trend and price action with unusual volume. Put them all together to help you decipher the next big trend for any stock.

Taser International (TASR) engages in the development, manufacture and sale of conducted electrical weapons for use in law enforcement, federal, military, corrections, private security and personal defense markets worldwide. This stock closed up 12.7% to $17.93 in Wednesday's trading session.

From a technical perspective, TASR ripped sharply higher here right off its 50-day moving average of $16.66 with heavy upside volume. This move pushed shares of TASR into new 52-week-high territory, after the stock broke out above some previous overhead resistance levels at $18.40 to $18.52. Shares of TASR closed just below those breakout levels at $17.93. Market players should now look for a continuation move higher in the short-term if TASR can manage to take out Wednesday's high of $18.57 with strong volume.

Traders should now look for long-biased trades in TASR as long as it's trending above Wednesday's low of $16.50 and then once it sustains a move or close above Wednesday's high of $18.57 with volume that hits near or above 1.34 million shares. If we get that move soon, then TASR will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that move are $23 to $25.

From a technical perspective, RRTS spiked sharply higher here right off its 200-day moving average of $26.80 with above-average volume. This move pushed shares of RRTS into breakout territory, since the stock took out a key downtrend line that dates back to the start of last October. Shares of RRTS are now quickly moving within range of triggering another big breakout trade. That trade will hit if RRTS manages to take out Wednesday's high of $28 to some more past overhead resistance levels at $28.49 to $28.70 with high volume.

Traders should now look for long-biased trades in RRTS as long as it's trending above Wednesday's low of $26.55 and then once it sustains a move or close above those breakout levels with volume that's near or above 261,513 shares. If that breakout hits soon, then RRTS will set up to re-test or possibly take out its 52-week high at $30.98. Any high-volume move above that level will then give RRTS a chance to tag $34 to $35.

Radian Group

Radian Group (RDN), through its subsidiaries, operates as a credit enhancement company in the U.S. This stock closed up 6.8% at $14.76 in Wednesday's trading session.

From a technical perspective, RDN ripped sharply higher here right above some near-term support at $13.75 and back above its 50-day moving average of $14.04 with strong upside volume. This move is quickly pushing shares of RDN within range of triggering a major breakout trade. That trade will hit if RDN manages to take out some near-term overhead resistance levels at $14.80 to $14.81 and then once it clears its 52-week high at $15.15 with high volume.

Traders should now look for long-biased trades in RDN as long as it's trending above Wednesday's low of $13.82 or above more support at $13.67 and then once it sustains a move or close above those breakout levels with volume that's near or above 4.06 million shares. If that breakout hits soon, then RDN will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $18 to $20.

Global Brass and Copper Holdings

Global Brass and Copper Holdings (BRSS) operates as a converter, fabricator, distributor and processor of specialized copper and brass products in North America. This stock closed up 2.9% at $17.75 in Wednesday's trading session.

From a technical perspective, BRSS spiked higher here right off its 50-day moving average of $17.26 with heavy upside volume. This move is pushing shares of BRSS above the upper-end of its recent range, which saw the stock trend between $15.63 on the downside and $16.75 on the upside. Market players should now look for a continuation move higher in the short-term if BRSS can manage to take out Wednesday's high of $17.96 with strong upside volume.

Traders should now look for long-biased trades in BRSS as long as it's trending above its 50-day at $17.26 or above $17 and then once it sustains a move or close above $17.96 with volume that's near or above 80,108 shares. If we get that move soon, then BRSS will set up to re-test or possibly take out its next major overhead resistance levels at $19.19 to $19.70. Any high-volume move above those levels will then give BRSS a chance to tag more key resistance levels at $21.04 to $21.16.

Federal-Mogul

Federal-Mogul (FDML) is a global supplier of technology and innovation in vehicle and industrial products for fuel economy, emissions reduction and safety systems. This stock closed up 9% at $22.97 in Wednesday's trading session.

From a technical perspective, FDML spiked sharply higher here and broke out above some key overhead resistance levels at $21.24 to $21.72 with above-average volume. This move pushed shares of FDML into new 52-week-high territory, which is bullish technical price action. This move also pushed shares of FDML above the upper-end of its recent range, which saw the stock trade between $18.05 on the downside and $21.72 on the upside. Market players should now look for a continuation move higher in the short-term if shares of FDML manage to take out Wednesday's high of $23.62 with strong upside volume.

Traders should now look for long-biased trades in FDML as long as it's trending above Wednesday's low of $21.31 or above its 50-day at $20.06 and then once it sustains a move or close above $23.62 with volume that's near or above 282,086 shares. If we get that move soon, then FDML will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that move are $27 to $30.

At the time of publication, author had no positions in stocks mentioned.

Roberto Pedone, based out of Delafield, Wis., is an independent trader who focuses on technical analysis for small- and large-cap stocks, options, futures, commodities and currencies. Roberto studied international business at the Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany. His work has appeared on financial outlets including CNBC.com and Forbes.com. You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.